Jiang, Bo; Tzavellas, Hector; Yang, Xiaoying - In: Journal of risk and financial management : JRFM 15 (2022) 5, pp. 1-15
In this paper, we study how the interbank market could impact deposit competition and bank profits. We first document … with the cost-to-income ratio (CIR). To rationalize these two facts, we embed the interbank market into a BLP model … interbank market will lead to a decline in NIM and bank profits. Our results indicate that the interbank market can facilitate …